By Chibuike Nwabuko
ABUJA (PRECISE POST) – The president of the 8th Senate, Dr Bukola Saraki has kicked over the Nigerian government’s decision to impose a 4% customs administration charge on the Free On Board (FOB) value of imports saying that, estimates suggest that it could result in an additional N2.84 trillion in costs. With annual imports valued at N71 trillion, this new fee will place a substantial burden on importers, leaving many questioning whether the Customs Service truly requires such an amount to carry out its operations.
Notably, the Nigerian Customs Service already operates with an allocated budget and receives incentive payments based on the total customs duties collected. The additional fee raises doubts about whether more funding is truly necessary, especially in a country where millions of citizens are already grappling with poverty and businesses are struggling, Saraki said on Saturday when he took to his X account handle.
The new charge, set to generate more than $1.5 billion in running costs for the Customs Service, is drawing sharp criticism in light of Nigeria’s economic realities. Importers are expected to pass the additional costs onto consumers, exacerbating the financial pressures faced by households already dealing with rising costs.
Of particular concern is that the 4% fee applies to all imports, including essential raw materials used by local industries. For businesses that import materials with a modest 5% duty, this new administrative charge would mean an extra 80% in fees on top of the original duty amount—potentially crippling businesses that rely on affordable imports to produce goods.
This latest move contradicts the government’s stated policy of easing the business environment, as it adds significant operational costs across various sectors. Industry stakeholders are calling for the government to urgently reassess and put a hold on the policy, stressing that the timing is particularly inopportune given the current economic struggles faced by the country’s citizens.
As pressure mounts, Nigerians are questioning whether this additional burden will further hinder the economy or, if re-evaluated, could serve to ease the burden on businesses and consumers alike.
Precise Post recalls that on Wednesday it was reported that Nigeria Customs Service is implementing a 4 per cent charge on the Free On-Board value of imports.
The Spokesman of the service, Abdullahi Maiwada, who made this known in a statement explained that the directive was in line with the provisions of the Nigeria Customs Service Act (NCSA) 2023.
“In line with the provisions of Section 18 (1) of NCSA 2023, the NCS is implementing a 4 per cent charge on the Free On-Board (FOB) value of imports.
“The FOB charge, which is calculated based on the value of imported goods, including the cost of goods and transportation expenses incurred up to the port of loading, is essential to driving the effective operation of the service.
“Furthermore, the NCS acknowledges concerns raised by stakeholders over the sustained collection of 1 per cent Comprehensive Import Supervision Scheme (CISS) fee.
“It is a regulatory charge imposed for funding Nigeria’s Destination Inspection Scheme alongside the 4 per cent FOB charge.
“As a responsive government agency, the service wishes to assure the general public that extensive consultation is ongoing with the Federal Ministry of Finance to address all agitations raised by our esteemed stakeholders, “ he said.
He urged all stakeholders to comply with the directive, which was conceived after extensive consultation with relevant stakeholders and organisations.
“All stakeholders are urged to support this legally binding initiative.
“As the measures introduced in alignment with the NCSA 2023 reflect a balanced approach born out of extensive consultations with industry players, importers, and regulatory bodies,” he said.
He described the contribution of stakeholders in shaping and actualising the NCSA 2023 as invaluable.
“Their insights, expertise, and unwavering commitment have been instrumental in ensuring a robust legal framework that enhances efficiency, promotes innovation and strengthens transparency in customs operations.
According to him, under the leadership of the Comptroller-General, Adewale Adeniyi, the service remains committed to transparency, fair trade practices, and efficient revenue management.
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